A satellite radio or subscription radio (SR) is a digital radio signal that is broadcast by a communications satellite, which covers a much wider geographical range than terrestrial radio signals.

Satellite radio offers a meaningful alternative to ground-based radio services in some countries, notably the United States. Mobile services, such as Sirius, XM, and Worldspace, allow listeners to roam across an entire continent, listening to the same audio programming anywhere they go. Other services, such as Music Choice or Muzak's satellite-delivered content, require a fixed-location receiver and a dish antenna. In all cases, the antenna must have a clear view to the satellites. In areas where tall buildings, bridges, or even parking garages obscure the signal, repeaters can be placed to make the signal available to listeners.

Radio services are usually provided by commercial ventures and are subscription-based. The various services are proprietary signals, requiring specialized hardware for decoding and playback. Providers usually carry a variety of news, weather, sports, and music channels, with the music channels generally being commercial-free.

In areas with a relatively high population density, it is easier and less expensive to reach the bulk of the population with terrestrial broadcasts. Thus in the UK and some other countries, the contemporary evolution of radio services is focused on Digital Audio Broadcasting (DAB) services or HD Radio, rather than satellite radio.

Business applications

Satellite radio, particularly in the United States, has become a major provider of background music to businesses such as hotels, retail chains, and restaurants. Compared to old-line competitors such as Muzak, satellite radio's significantly lower price, commercial-free channel variety, and more reliable technology make it a very attractive option. Both North American satellite radio providers offer business subscriptions, though given the merger of XM Satellite Radio with Sirius, the future of XM for Business is uncertain. Sirius's commercial services are provided nationally by third-party partner Applied Media Technologies Corporation.

System design

Satellite radio uses the 2.3 GHz S band in North America and generally shares the 1.4 GHz L band with local Digital Audio Broadcasting (DAB) stations elsewhere. It is a type of direct broadcast satellite and is strong enough that it requires no satellite dish to receive. Curvature of the earth limits the reach of the signal, but due to the high orbit of the satellites, two or three are usually sufficient to provide coverage for an entire continent.

Local repeaters similar to broadcast translator boosters enable signals to be available even if the view of the satellite is blocked, for example, by skyscrapers in a large town. Major tunnels can also have repeaters. This method also allows local programming to be transmitted such as traffic and weather in most major metropolitan areas, as of March 2004.

Each receiver has an Electronic Serial Number (ESN) Radio ID to identify it. When a unit is activated with a subscription, an authorization code is sent in the digital stream telling the receiver to allow access to the blocked channels. Most services have at least one "free to air" or "in the clear" (ITC) channel as a test. For example, Sirius uses channel 184, Sirius Weather & Emergency.

Most (if not all) of the systems in use now are proprietary, using different codecs for audio data compression, different modulation techniques, and/or different methods for encryption and conditional access.

Like other radio services, satellite radio also transmits program-associated data (PAD or metadata), with the artist and title of each song or program and possibly the name of the channel.

Satellite radio vs. other formats

Satellite radio differs from AM or FM radio and digital television radio (or DTR) in the following ways. The table applies primarily to the United States.

² The sound quality with both satellite radio providers and DTR providers varies with each channel. Some channels have near CD-quality audio, and others use low-bandwidth audio suitable only for speech. Since only a certain amount of bandwidth is available within the licenses available, adding more channels means that the quality on some channels must be reduced. Both the frequency response and the dynamic range of satellite channels can be superior to most, but not all AM or FM radio stations, as most AM and FM stations clip the audio peaks to sound louder; even the worst channels are still superior to most AM radios, but a very few AM tuners are equal to or better than the best FM or satellite broadcasts when tuned to a local station, even if not capable of stereo. AM does not suffer from multipath distortion or flutter in a moving vehicle like FM, nor does it become silent as you go behind a big hill like satellite radio.

³ Some satellite radio services and DTR services act as in situ repeaters for local AM/FM stations and thus feature a high frequency of interruption.

4 Nonprofit stations and public radio networks such as CBC/Radio-Canada, NPR, and PRI-affiliated stations and the BBC are commercial-free. In the US, all stations are required to have periodic station identifications and public service announcements.

5 In the United States, the FCC regulates technical broadcast spectrum only. Program content is unregulated. However, the FCC has tried in the past to expand its reach to regulate content to satellite radio and cable television, and its options are still open to attempt such in the future. The FCC does issue licenses to both satellite radio providers (XM and Sirius) and controls who holds these licenses to broadcast.

6 Degree of content regulation varies by country; however, the majority of industrialized nations have regulations regarding obscene and/or objectionable content.

Portable Satellite Radio

Portable satellite radios let you listen to satellite radio just about anywhere you go. They are very similar to standard portable music players, designed for music on the go. These however, feature built-in antennas that receive the satellite signal, and come with rechargeable batteries. In fact, all you have to do is plug in headphones, and you can easily listen to and carry them around easily. Reception can be tricky however, being blocked by buildings and tall trees, and sometimes by your own body depending you the way you are facing and how you are carrying it. However, the best reception will be received outdoors in the open.

United States

In the United States and Canada, one holding company, Sirius XM Radio, operates the two satellite radio services, after a merger (technically the acquisition of XM by Sirius) in July 2008. A monthly fee is charged for both services (as of 2005, Sirius also offers a one-time fee of nearly $500 valid for the lifetime of the equipment; however, there is a $70.00 USD fee for switching receiver, and this may be done only three times ever). Some XM music channels have commercials, while Sirius is commercial-free. Both services have commercial-free music stations, as well as talk and news stations, some of which include commercials. XM uses fixed-location geostationary satellites in two positions, and Sirius uses three geosynchronous satellites in highly elliptical orbits passing over North and South America, to transmit the digital streams. The net difference is that the Sirius signal comes from a higher elevation angle in the northern part of the U.S. and even more so in Canada. (This higher angle makes Sirius' signal less likely to drop out on cities, but more likely to drop out in parking garages, gas stations, tunnels, and other covered spaces.)

Both services are available mainly via portable receivers in automobiles, but both have many accessories so one can listen at home through a home stereo, with a portable boombox, or online through a personal computer. Both services now have some form of receiver that is completely portable.

Satellite radio's chief asset is the fact that it is not localized: drivers can receive the same programming anywhere in the footprint of the service. A stop at any truck stop will demonstrate the popularity of XM among long-haul drivers. In addition, both XM and Sirius carry programming that is simply not feasible on commercial radio stations. Specialty stations cover things such as family talk, radio drama, classical music, and live events.

The footprint of both Sirius and XM is only the United States (not including Alaska), Canada, and the upper third of Mexico; it does not cover Hawaii as satellite TV does.

Success so far

As of July 29, 2008 Sirius XM claims over 18.5 million subscribers. One critical factor for the success of satellite radio is the deployment of in-car receivers. Sirius XM has attempted to convince automakers to equip vehicles with their receiver. As of 2008, the following manufacturers offer satellite radio as original equipment:

Sirius has an exclusive contract for VW and Audi vehicles from 2007 through 2012. Those brands previously offered both services. GM, Honda and Suzuki are all major investors in XM; Sirius is not offered as options in their vehicles. Bentley and Rolls-Royce come not only with receivers but lifetime subscriptions for Sirius service as well. XM is featured in select Harley-Davidson motorcycle models, while Sirius can be heard in several brands of recreational vehicles and boats.

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